Digiday+ Research: Independent agencies bear the cost of data collection

ingredients factory belt

This research is based on unique data collected from our proprietary audience of publisher, agency, brand and tech insiders. It’s available to Digiday+ members. More from the series →

Agencies normally aren’t shy about passing work costs on to their clients. Yet as more agencies work to gather and store data about internet users, a significant percentage of independent agencies are bearing that cost on their own, according to new Digiday+ research. 

In November, Digiday polled several dozen agency and brand professionals on a number of topics, including how they are preparing for returns to the office and what kinds of vaccination policies their employers have. Forty independent agency professionals with knowledge of how their organizations approach data collection answered questions about that practice. 

While a significant chunk of independent agencies do not offer this kind of service to clients, among those that do, close to half said they bear the costs themselves, rather than passing it on to clients. 

Anecdotally, respondents who said they worked at holding company agencies were much less likely to pass the costs on, but an insufficient number of holding company agency respondents weighed in on the topic.

While agencies have been collecting data about internet users for years, the relationship to that data — and to the third party brokers that provide it — has changed considerably since Google said it would depreciate support for third-party cookies in its Chrome browser. 

The data is typically one service among many agencies provided to clients. Two thirds of the independent agency respondents indicated their agencies offered some combination of creative, media and performance marketing services to their clients. 

https://digiday.com/?p=435520

More in Marketing

Is this X’s (formerly Twitter) final goodbye to big advertisers? It looks like it

In the packed DealBook conference in New York yesterday, owner Elon Musk bluntly told them to shove it.

Goodbye LinkedIn, Hello TikTok: The Return podcast, season 2, episode 6

WorkTok, or CareerTok, is in full force. Combined, those hashtags on TikTok have over four billion views and it is benefiting Gen Z.

Research Briefing: TikTok tops brands’ holiday wishlist

In this week’s Digiday+ Research Briefing, we examine how brands have been upping their TikTok investments this holiday season, how Lyft and the MSG Sphere are positioning themselves as ad opportunities beyond OOH, and how publishers are committing to building their events businesses in 2024, as seen in recent data from Digiday+ Research.